Key facts
- Job growth in October was led by healthcare, transportation, warehousing and manufacturing, the bureau reported.
- The bureau said layoffs in September fell to their lowest level in a year and a half.
- Challenger, Gray & Christmas tracked just under 44,000 layoffs in October, a 71% decrease from October a year earlier.
- Annualized inflation was 3.7% in September, outpacing the 3.1% annual rise in average hourly earnings.
- Gasoline prices averaged $1 a gallon higher than a year earlier, which the report attributed to the war in Iran.
- Diesel prices were 60% higher than prewar levels, according to the report.
The US added 165,000 jobs in October, the Bureau of Labor Statistics reported on November 6, 2026, a figure that surpassed economist expectations. The unemployment rate fell slightly to 4.1%. Average hourly earnings rose at an annual rate of 3.1%, slightly higher than the prior month.
Economists had described the labor market as stuck in a "low-hire, low-fire" state, in which job growth is sluggish but layoffs also remain low, according to the report. Initial figures for August and September were revised up by a total of 84,000 jobs. Job growth was seen in healthcare, transportation, warehousing and manufacturing.
Other data released earlier in the week showed steady employment. Layoffs in September fell to their lowest level in a year and a half, according to the bureau, while Challenger, Gray & Christmas tracked just under 44,000 layoffs in October, a 71% decrease compared with October a year earlier.
Inflation over the last few months has largely outpaced wage growth. In September, the annualized inflation rate was 3.7%. Gasoline prices averaged $1 a gallon higher than a year earlier, which the report attributed to the war in Iran, and diesel prices were 60% higher than prewar levels.
Heather Long, chief economist at Navy Federal Credit Union, said in a statement before the report: "Americans delivered a clear verdict in the midterm elections that the current economy is squeezing people financially and making it hard to get by, let alone get ahead." She added: "The labor market is a good example of why people are frustrated."
The Federal Reserve raised interest rates in September for the first time since 2023, to a range of 3.75%-4%, citing inflation. Officials kept rates steady at their October meeting, held the week before the midterm election, and economists expect one more rate increase at the December meeting, according to the report.